In addition it would have significant disadvantages

General Secretary of Eurelectric, the association of European electricians

Paul Bulteel: Competition is clearly growing, but we are not yet final level that need to reach. Liberalisation is a process and not an event that come true in a limited period of time. It is complex, requires time and a continuous effort to improve. To create a competitive market in Europe, it must first properly apply the existing directives - however, all States have not transposed them into national law. Need to strengthen the networks where it is possible and improve cooperation between network operators. Must be that the regulators - the term is now almost exclusively national - organize themselves to have a real European dimension, especially on the management of the networks. And finally, that the companies acquire a more European dimension and speakers on other markets, and not only on their traditional market - which is to be.

P.B.: There's a core of major players capable of responding to the challenges of investment or climate change. They will have to face the challenge of small and medium sized players. They can survive - even more than survive - by their specialization or their integration in the local fabric.

P.B.: Must be a debate on this issue. We certainly do not defend the status quo and we say that a much closer cooperation between regulators is absolutely necessary to have a European approach on some problems of regulation. Several formulas are possible: better cooperation between existing regulators, the creation of a "ERGEG (1)" - i.e. a European Institute of regulators that have more skills than today ' hui - or even a European regulator. The options are open. Instead of deciding now a particular solution, to study and only then select the most appropriate.

P.B.: We are all agreed that the independence of network operators is a key element to ensure that the market works well. But the current provisions on legal separation and management are sufficient and appropriate, provided that they are applied rigorously by the competent authorities and the electrical industry itself. We have a little fear that the problems of application of the directive by certain States (3) lead to a leak in front: as it fails to apply the current legislation, it takes refuge behind the use of new legislation... However, the two absolute priorities are to operate the current unbundling - as provided for by the directive of June 2003-, and to achieve better cooperation between network operators. As this is not because they would be fully independent that they would cooperate better. It would be simplistic to think that the unbundling of property would solve all problems, it is not a miracle solution. In addition, it would have significant disadvantages. Since our companies can now manage their financial situation with a portfolio of different activities - some, like electricity, are at high risk while other regulated nature, provide a much more stable income. If it breaks this possibility and optimize their portfolio of activity, this could have negative consequences on their financial situation.

P.B.: Yes and no... The competition DG has the full right to this investigation, it is clear. The other evidence is that concerns exist in the market. If the sector inquiry can clarify some things, give directions or even correct situations, we can only applaud this action. In this sense, I have no concerns and I hope that this survey helps to advance the creation of truly competitive European markets. However, I hope that the competition DG will take into account the fact that liberalisation does not put in place immediately, but that it is a process. It is the Council that I always give him: do not commit the or be limited to a simple photograph of a situation - which, by definition, would lead to the fact that it is not ideal because we are still in a transition to a market regime regulated to a competitive market.

P.B.: I do préjugerai no conviction. He must let the competition DG. If it points which are not acceptable behaviors, first these companies have the right to defend itself. Then, if untenable practices within companies is confirmed, I would have no interest - or indeed - intention to defend colleagues that do to involve not as required by law.

P.B.: Should never expect to achieve an ideal that will solve all the problems we face. That said, the European experience shows that we are on the right track, as well for citizens, industrial electricians themselves consumers.

P.B.: I have, of course, understanding for some of our industrial customer who complains of a market that does not give the necessary stability and for which the issues are real. But, when the market will be fully developed and the wholesale markets will have reached the necessary maturity, this problem will disappear. In the meantime, should be a place long-term partnerships, not to replace the wholesale markets, but to accompany them arriving at a solution that would allow the market to flourish and his promises to consumers.

P.B.: Our ambition is to achieve large regional markets that operate completely in 2009, while preparing their integration on a European scale - it is not to develop regional markets with philosophies and different principles. The creation of regional markets goes hand in hand with the building and the preparation of a real European dimension. The integrated European market, may be achieved in 2012.

P.B.: I do not comment the particular situation of the France. But, so general, we are quite convinced that the return to systems of regulation of prices observed in some countries is a quite contrary to the development of the markets. It may slow, delaying the development of a real market. These protection measures are therefore entirely inappropriate. On the contrary, the action of the authorities should be to accelerate the creation of markets, particularly wholesale markets that can meet the needs of clients, if necessary in the accompanying of long-term contracts, but not with use of a regulation of the prices.

Interview conducted by Marie-Christine Corbier

(2) In a speech to the British regulator of the sector of energy (OFGEM) on 28 September, Neelie Kroes has estimated that the current situation "renforç (has) the need to move towards a separation of property", a subject which she "will discuss certainly with (its) colleagues in the coming months".

(3) Early April, the European Commission sent 28 letters of formal notice to 17 States for problems of transposition of directives electricity and gas of 26 June 2003.